The Buy-In
OF all the possible fiascoes stemming from the Management Trap, “buying in” for your downline or teaching them to do this for their distributors is the worst. Marketers who get
caught spending more time managing than recruiting often get snared into this trap, which has serious legal consequences. And when law enforcement goes after a buy-in pyramid deal, we all look bad by association. Success in network marketing results from the creation
of “real” volume as opposed to “promotional” volume. Real volume is produced from orders
of satisfied customers and distributors who use and love the products (or services), ordering
them month after month, thus creating longterm, stable sales volume in that organization. It is the most important type of volume because it represents money spent by bona fide
customers for items that their families consume and then reorder. Promotional volume results from multiple product packages that are ordered by distributors who may be
attempting to “buy their way” to the next level or intend to use these packages to get their new distributors started in the business. “Buying-in” will always backfire with distributors who simply cannot afford it and have no legitimate outlet for moving the products.
When new associates join your organization and have definite prospects to whom they know
they can sell their starter packages, promotional volume can be a valuable tool for creating the often-needed initial volume swell to get distributors through qualification requirements.
But first-year networkers often get confused by this sudden spurt of success and start thinking that they have created a solid flow of -volume throughout their organization.
Promotional volume does not result in a stable organization. Both types of volume serve their purpose in network marketing, but the majority of new distributors will benefit from being introduced to a low-cost product starter package, consisting of products, training, or services
they will personally use, which is the essence of starting people in our business.
Some people caught up in supervising their groups who are simultaneously working toward promotions and higher rankings within their companies will often purchase unneeded products and then teach their personally sponsored frontline distributors to do the same thing
in order to meet requirements for advancement. However, if distributors are doing this
business right, they will be recruiting enough new people each month in order to advance through the ranks properly. But if they start attempting to manage a small group of marketers, they may find at the end of the month that their sales volume requirements are not adequate. So, they simply call in an order for products they don’t really need or intend to sell in order to meet promotion requirements, hence the name “promotional volume.”
Front-end loading is forbidden by state and federal regulators who believe that such activities are pyramid-like in nature. We agree. In fact, we have a term for this kind of activity: “garage qualifying.” We sometimes wonder how many American garages are crammed to over-flowing with non-run pantyhose, 3-D cameras, home insulation, videos, and other non-consumable products. If all of America’s “garage products” were put together for one big flea
market, we’re sure it would stretch from Missouri to Maine.
Don’t ever allow yourself to be duped into believing that you can “buy” your way to the top of a company. You can’t! And if for any reason your company’s compensation plan is set up to reward those who “buy in,” it’s just a matter of time before some attorney general or Federal
Trade Commission representative slams the regulatory “cease and desist” order on the company. The process of buying-in never leads to long-term success. It only serves to bridge the gap between levels in a compensation plan. We do not know any distributors earning big
money who bought their way to the top. But we know many who have garages full of products. Of course, if the leader is seen buying-in, the troops will all do the same. In a short
time you’ve got a bunch of people with garages full of dust-gathering products, and then it’s just a matter of time until they become disgusted and quit. And when they do, rest assured
they’ll tell everyone who will listen what a horrible scam this industry is. Many of the better companies have implemented product return policies of up to 90 percent, which precludes
people from being burdened with so many products. It can be a rude awakening for a buy-in leader when his check arrives and it’s minimal because his company has charged back all returns from the very angry distributors whom he “front-end loaded.”
Some network marketers, in their eagerness to get off to a fast start, simply don’t understand this philosophy and will make the mistake of skipping over the critical step of creating real volume in their organizations. It is vital that all new distributors begin with a solid commitment to use as much product as possible, share the product personally—especially among close
family and friends—and teach everyone in their organization to do the same. As simplistic as this may seem, it must be done before beginning the more dramatic and gratifying process of creating large recruiting volume through your power players and teaching them to duplicate the process. It is the balance of both types of volume, promotional—to propel you into success in the early days—and real—to stabilize your volume and provide ongoing, residual income—that results in the long-term success we all desire. Promotional volume is extremely
valuable, but your business can survive without it. However, failure to create real volume can
lead to the eventual stagnation and collapse of your organization.
Sir Lofty 0240787223
BADENYA HARRY 